Cream sugar and lard together in a large bowl.,Add and beat eggs into mixture.,Combine evaporated milk and water.,Add water mixture to creamed mixture.,Mix flour, baking powder, salt and nutmeg in large sieve and sift into wet ingredients.,Add enough flour to make a stiff dough.,Roll and cut.,Five pounds of lard are required to fry the donuts.,This modified version of the traditional donut recipe is somewhat more appropriate for the modern home chef.,2 cups all-purpose flour,1 level teaspoon baking powder,1 tablespoon shortening,1 1/2 cups sugar,______,1/4 level teaspoon ground nutmeg,1/4 level teaspoon ground cinnamon,1/2 cup milk,1 egg,Cooking oil or lard for deep frying,Reserve 1/4 cup of the flour for the board.,Combine the remaining flour with the baking powder and set aside.,Cream the shortening, 1/2 cup of the sugar, salt, nutmeg and cinnamon.,Add milk and well-beaten egg and stir.,Then add the flour-baking powder mixture.,Work into a soft dough and roll onto the floured board into a 1/4-inch thick sheet.,Cut into the desired shape and fry in the oil, heated to about 375 degrees F. Turn donuts frequently while frying.,The fat should be hot enough to give the donuts a rich golden-russet color in 3 minutes.,While hot, roll donuts in remaining sugar.,This recipe will make about 15 good sized donuts.,Yield: 15 donuts,Prep Time: 30 minutes,Cook Time: 3 minutes,Ease of preparation: intermediate